British bottling company Gerber Emig and Refresco, a Netherlands-based bottler of soft drinks and fruit juices, have entered into a contractual agreement to merge and create a pan-European bottler of soft drinks and fruit juices to serve retail and branded customers.
The new corporate name of the group will be Refresco Gerber, in which Gerber Emig shareholders will own 30% of the shares and Refresco shareholders will own 70% of the shares.
Refresco Gerber will have significant presence in all the major soft drinks product categories in Europe, broader product and packaging mix and better supply chain opportunities.
Both the firms are fully equipped to capitalise on continuing growth in the European private label market.
Gerber Emig group CEO Andrew Biles said: "The new group will be a logical combination for Gerber Emig and all stakeholders providing greater scale and an enhanced capability for industry innovation."
The transaction is subject to the approval of competition authorities and is expected to be completed before the end of summer 2013.
Upon completion, Refresco CEO Hans Roelofs will become CEO of the new group and Biles will join the senior management team of the new group based at the head office in Rotterdam.
Until the completion of the transaction, both companies will operate independently.
